Answer and Explanation:
The journal entries are shown below:
1 Equipment $53,420
To Cash $53,420
(Being the equipment is purchased for cash is recorded)
The computation is given below:
= Cash price of machine + sales tax + shipping cost + insurance during shipping + installation and testing cost
= $49,500 + $3,650 + $100 + $60 + $110
= $53,420
2. Depreciation expense $9,614
To Accumulated Depreciation - Equipment $9,614
(Being the depreciation expense is recorded)
The computation is shown below:
= ($53,420 - $5,350) ÷ ( 5 years)
= $9,614
Answer:
$2,800
Explanation:
Particulars Amount
Favorable temporary difference at the end of 20X2 $7000
* Income tax rate <u> 40% </u>
Deferred tax asset account at the end of 20X2 <u>$2,800</u>
Suppose GetThere Airlines increases their ticket price to $200+10n = 10(20+n)$ dollars. Then the number of tickets they sell is $40,000-1000n = 1000(40-n)$ .<span> Therefore, their total revenue is
</span>
$$10(20+n)\cdot 1000(40-n) = 10000(20+n)(40-n) = 10000(800+20n-n^2).$$
This is maximized when $n=-\left(\frac{20}{2\cdot(-1)}\right)=10$ .<span> Therefore, they should charge </span><span>$200+10\cdot 10 = \boxed{300}$</span><span> dollars per ticket.</span>
Answer:
$328,000
Explanation:
As we all know that:
Ending Equity = Opening Equity + Share Issues + Net Income – Net Loss – Dividends Paid
Here,
Opening Equity is $293,000
Money raised through Shares Issuance was $24,000
Net Income would be $69,000
Dividends paid were $58,000
There were no losses as their is Profit for the year (Net Income).
By putting values, we have:
Ending Equity = $293,000 + $24,000 + $69,000 - $58,000
= $328,000
Answer:
Net income= $11,412.2
Explanation:
Giving the following information:
sales of $46,382
interest expense of $3,854
cost of goods sold of $16,659
selling and administrative expense of $11,766
depreciation of $6,415
t=0.35
We need to use the following formula:
Net income= (sales - COGS - selling and administrative expense - interest expense - depreciation) - tax + depreciation
First, we deduct Depreciation to decrease the tax base, but because it is not an actual payment, we have to sum it after tax.
Sales= 46,382
COGS= (16,659)
Gross profit= 29,723
Selling and administrative expense= (11,766)
Interest=(3,854)
Depreciation= (6,415)
EBT= 7,688
Tax= (7,688*0.35)= (2,690.8)
Depreciation= 6,415
Net income= $11,412.2
